471 views

More large rig orders for SG shipyards expected next year

It will also be supported by oil prices.

The rig market continued to flourish in 2022, backed by higher utilisation and day rates, UOBKayHian said.

The analyst noted that both of Singapore’s shipyards won large bids of oil rigs in the second half of 2022, which will be expected to increase in 2023.

It added that the growth of orders will also be underpinned by oil prices supported above $US100 in the near to medium term.

It maintained the offshore marine rating to overweight. Amongst the top picks for the industry are Keppel Corporation and Sembcorp Marine.

“In our view, supply dynamics will likely outweigh any demand destruction and continue to push oil prices higher over the coming quarters,” said UOBKayHian.

“After the US midterm elections with power evenly split between Republicans and Democrats, continued US Strategic Petroleum Reserve drawdowns may be more difficult,” added the analyst.

Due to higher utilisation, more and more rigs across the three asset classes were reactivated as we note that the percentage of warm and cold-stacked rigs have declined by 10-33% year-on-year.

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!